Sainsbury’s proposed merger with Asda is the biggest takeover in UK food retailing. If it goes ahead, Sainsbury’s would become #6 in Europe and create a UK duopoly with Tesco. To us, the move also signals the start of a European exit for Walmart.
Grocery e-commerce may be turning various established retail habits upside down, but it seems impossible for this format to neglect private labels. In Europe, the channel holds the second largest private label share.
Asda has revealed that like-for-like sales edged up by 0.5% in the fourth quarter as it enjoyed a surprise Christmas boost. This marks its third consecutive quarter of growth, albeit at a slower rate than in the previous two quarters.
Walmart has announced that Roger Burnley, currently Chief Operations Officer, will take over as President and CEO of Asda UK, from 1 January 2018. Asda has also appointed Jesús Lorente as its Chief Merchandising Officer.
Walmart in the USA is adjusting the prices of its key value items to match those of Lidl, Lebensmittel Zeitung writes. Nearly 50 core products have already had their prices lowered to nearly match those of the German discounter, which only entered the US market in June this year.
UK supermarket chain Asda struggled to keep up with its competitors in 2016. Figures filed at Companies House show that the Walmart subsidiary posted a 19% drop in pre-tax profit and like-for-like sales declines of 5.7%, despite improvements in the final quarter.
Every week, we offer you in-depth analyst insight from the grocery retail industry, coupled with data, analysis, forecasts and comments from our international retail experts. Stay up-to-date with our new Analyst View reports.
Keep track of the latest developments in European grocery retail
Benefit from the unique insight of our senior analysts
Be one step ahead and strengthen your business plans